Florida is a Great American Jurisdiction for Non-Residents: The Benefits

16 October 2018

American residents are fully aware of the importance of Florida. It’s not only a great vacation and retirement destination, but it’s also home to many multinationals taking advantage of unique incorporation laws. Many in Europe, the Middle East and beyond are yet to catch on to the tax benefits of The Sunshine State. Presently, as far as tax benefits for non-residents are concerned, it’s one of the world’s most attractive jurisdictions because of Florida’s unique approach to LLCs.

Explaining How a Florida LLC Works

LLCs are a common type of business. Similar to the European Limited Company, it is a hybrid of a limited partnership and a corporation to permit company status to small owners with ease. However, there is one major benefit for LLCs registered in Florida. They are not subject to the same tax laws by the US tax authorities. In fact, such LLCs pay only one type of tax. It’s called the Florida Franchise Tax and costs just $150 per year.

In the US, the LLC is set up so that the profits go directly to the individual. Then, when the American citizen files their annual tax return, the LLC’s profits are applied to their income. They are then taxed accordingly.

But there are real advantages for non-residents who are not required to post a tax return in the US. If this applies to you, then you will receive the income but will not be subject to the same taxes. You may however be required or asked to pay tax in your home country.

Operate a Florida LLC From Anywhere

Most businesses will discover it is usually the sensible thing to register in their home country or state. However, if you primarily trade through the web and have no fixed location, your site will be accessible throughout the world. Incorporating in Florida is the best way to ensure you cement your business as a borderless one. It will not be required to pay tax in Florida because the business does not operate from there. Incorporating elsewhere in the US may incur Federal taxes, however.

When opening a Florida LLC, you will not be required to provide information on the following:

An operating address. Even if you chose to register one, it can be almost anywhere in the world

Details such as names and addresses on any shareholders

No details of directors, officers, or other official titles

Subsequently, ownership details are not made public. There is no publicly searchable database that members of the public may use to find such information. However, they do require a mailing address to send official documentation such as tax franchise information and forwarded correspondence.

Tax Benefits in Brief

LLCs registered in Florida pays no other taxes except the $150 franchise tax, payable every year

This also means no state corporate income tax; there is also no sales tax in the state

Furthermore, companies that do not operate within the state are not subject to the same state corporate income tax for Florida companies

There are no taxes applying to Florida capital shares and stock transfers

Non-residents are not subject to state inheritance taxes on stocks and shares

Other Benefits of Florida LLC

Florida LLCs are Convenient and Flexible:

Florida has one of the easiest processes for switching a corporation to LLC and vice versa if required. This goes against standards in other states. There are many other benefits centring purely on flexibility and ease:

Your actual headquarters may be anywhere in the world

It is possible (and straightforward) for a single person to hold be a sole stockholder and hold sole directorship and all executive titles

It is not required that you hold a working office address anywhere in Florida. This may be your registered agent

You are not required to keep company records

Stocks and share transfer does not require public notice, but can be done immediately and in private

It is not required that you are a US citizen to form an LLC or Florida C Corporation and there is no minimum financial investment required

You may conduct several businesses through the same Florida LLC. It’s also possible to own property elsewhere in the world

You are able to form such a company through SFM without visiting the state.

The Legal Benefits:

There is something in place called the “Florida Director Shield Law”. This protects owners from liability in relation to company actions. As such an owner, you will not have to fight expensive lawsuits

Florida has a Court of Chancery which is unlike anything in any other states. This is used to resolve legal disputes with as minimal cost as possible

If the worst does happen and an individual or group attempts to sue you, the registered agent will act as a buffer against such legal action and service the dispute

The privacy laws make it difficult for creditors and other claimants to take legal action in certain cases